The EU and Andorra are negotiating a new tax transparency agreement according to the EU Commission. Under the new agreement, Andorra and EU Member States will automatically exchange information on the financial accounts of each other’s residents from 2018.

The information to be exchanged includes the names, addresses, tax identification numbers and dates of birth of residents with accounts in Andorra, as well as other financial and account balance information. This is in line with the new OECD/G20 global standard for the automatic exchange of information. According to the Commission, the enhanced information exchange will help tax authorities to track down tax evaders, while also acting as a deterrent for those that hide income and assets abroad.

The new agreement should be formally signed early next year, following authorisation by the EU’s Council of Ministers and the Andorran government.